There are now four established methods of payment which are employed by consumers today; cash, credit card, debit card, and cheques. Debit cards have risen in usage over the last decade while cheques, often considered to be a very antiquated form of payment, have not yet completely died away. Some consumers may prefer to make their purchases with cheques, however, believing they are still superior to the alternatives. What they do not realise is that debit cards trump cheques in nearly every category. Below is a list of why using debit cards are better than writing cheques.

Better & Faster Fraud Detection

At their most basic levels of functionality, debit cards are much easier to track because they operate electronically. They are also easier to protect since a user’s personal identification number (PIN) is generally required to complete a transaction. Cheques are often written days before they clear the account and, consequently, can be quickly written to purchase a product that will take many days to show up on the account’s activity. Therefore, if a thief wanted to defraud a debit card account, they would have many more hurdles to jump than they would if writing a cheque. But if the account holder writes a cheque, it is possible for that cheque to be tampered with or forged in order to gain access to the account holder’s savings. Due to the nature of cheques, such fraud could take days or even several weeks to detect.

Better Record Keeping

Balancing chequebooks is still a necessity, for as long as cheques remain an alternative payment method. This is true no matter how few cheques a chequeing account holder writes throughout the year. Debit cards, on the other hand, do not require such rigorous chequebook balancing and cheque tracking. Debit card statements are issued monthly by most banks and give an itemised listing of each expense transacted during the previous month. Diligent debit card holders will review these statements to ensure that no unauthorised purchases have been made on their accounts. This process, however, will be much easier and faster than traditional chequebook balancing, reducing the total investment of time and energy required from the debit card user.

Convenience

Purchases made with a debit card are typically completed within a matter of seconds. The debit card user simply swipes their card, enters their personal identification number, takes their receipt and then exits the store. Purchases made with cheques, however, are cumbersome and lengthy by comparison. The cheque writer must fill in all the appropriate information on the cheque, such as the date, the name of the vendor, the amount (often both in longhand and in numerics) and their own signature. The store clerk must then process the cheque and issue the receipt. Depending on the store, this process may be even more complex and involve additional stages. Debit cards provide the convenience of credit cards but without the worry of owing money to the creditor and without the hassle and time consumption of cheques.